Netflix remporte la guerre du streaming et son action va bondir de 22%, selon la Bank of America
Bank of America declares Netflix as winner of the streaming wars
Bank of America declared Netflix the winner of the streaming wars and increased its price target to $585 from $525, representing potential upside of 22%. Analyst Jessica Reif Ehrlich said, “Netflix is the ‘king in streaming’ and its stock price could surge 22%.” The bank reiterated its “buy” rating on Netflix, noting that changing market dynamics over the last 18 months and investors’ renewed focus on profitability have made it “increasingly clear that Netflix has won the ‘streaming wars.'” This has been evidenced by the fact that much of Netflix’s top 10 list of TV shows and movies has been third-party content recently.
Positive impacts on Netflix’s strategy and profitability
Bank of America emphasized that the broader crackdown on password sharing will be an accelerant to Netflix’s ad-supported tier. This should be a “win-win” moment for Netflix as it should increase the availability of third-party content that Netflix can acquire, driving efficiencies for Netflix’s spending strategy. The company no longer needs to finance as much higher-risk new production and can supplement more concentrated ‘bets’ with well-known established content, according to Ehrlich.
Netflix should also see continued growth from its password-sharing crackdowns in the near term and its low-cost advertising subscription plan in the medium to long term. The ad-supported tier provides an attractive low-priced option for ‘borrowers’ who still wish to access the Netflix service. Netflix recently disclosed that it now has more than 23 million active users for the ad-supported tier, up from 15 million in November and 5 million in May.
Long-term opportunity in advertising on demand
Bank of America remains bullish on the longer-term opportunity in advertising on demand as Netflix’s pricing strategy should drive scale and new bundling agreements lower the retail price for consumers and decrease marketing spend and churn for Netflix.
Source : finance.yahoo.com
